According to the law firm press release, INTL FCStone is a financial services holding company. The Company and its subsidiaries offer a broad spectrum of financial services to its customers throughout the world, including execution and advisory services in commodities, currencies, and international securities.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) there existed critical integration issues with the companies acquisitions, including with respect to financial reporting for its Commodity and Risk Management unit; (2) the Company overstated revenues in trading gains of up to $10.2 million, causing an overstatement of net income by approximately $6.4 million; (3) the Company lacked adequate internal and financial controls; and, (4) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On February 9, 2012, the Company held a conference call with investors to discuss its first quarter 2012 performance. The Company reported revenues $20 million lower than the same period for the prior year. During the conference call, the Company discussed various critical issues such as slowing revenue streams and falling volume in the commodities market. On this news, the Company's shares fell $3.94 per share, or 14%, to close on February 9, 2012 at $22.54 per share.
On December 17, 2013, the Company disclosed that it will not be able to file its Form 10-K for the fiscal year ended September 30, 2013, due to a review to evaluate the need to restate its financial results for its 2011, 2012 and 2013 fiscal years as a result of an overstatement of trading gains discovered in the reconciliation of FCStone Markets, one of the Company's subsidiaries. The Company advised that the restatement will reduce previously reported trading gains by up to $10.2 million and consolidated net income by approximately $6.4 million. On this news, INTL FCStone securities declined $1.62 per share, or nearly 8%, to close at $18.93 per share on December 17, 2013.
On April 3, 2014, the Court appointed Lead Plaintiffs and approved their selection of Lead Counsel.
On April 29, 2014, a Stipulation and Order appointed Lead Plaintiff and approved their selection of Counsel.
On June 13, 2014, the Complaint against the Defendant was amended.
On February 5, 2015, the Court issued an Order granting Defendants' Motion to Dismiss and giving Plaintiffs leave to amend their Complaint. Plaintiffs filed a seconded amended complaint on March 6.
On July 13, 2015, the Court issued an Order granting Defendants' Motion to Dismiss and terminating this action.